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|December 6, 2018, City Council Regular Meeting|
17. Motion to Adopt Resolution Directing the City Manager to Implement a Level I Freeport Tax Exemption at the Rate of 80% to be Effective January 1, 2019
Economic Strength And Poverty Reduction
In accordance with State law, the City of Savannah held a voter referendum on May 20, 2014, at which a majority of the municipal voters approved a Level I Freeport Exemption. This exemption will engender a competitive business environment for manufacturers to remain, relocate or expand their operations in the City of Savannah.
Almost all (89 percent) of Georgia’s counties and more than 140 cities have adopted some level of the Level I Freeport Exemption. The City of Savannah established the initial Level I Freeport Exemption at 20%, and now desires to increase the total Level I Freeport Exemption to 80% as of January 1, 2019, as authorized by O.C.G.A. 48-5-48.2. A 80% Level 1 Freeport Exemption would result in a tax savings totaling approximately $1.6 million annually for Savannah manufacturing businesses.
This exemption will apply to the following types of tangible personal property:
David Maxwell, CFO
Each 20% increase in the Freeport Exemption results in a tax decrease of approximately $400,000.00. A 80% Freeport Exemption would result in tax reductions of approximately $1.6 million annually.
Resolution creating 80% level I freeport exemption.pdf